#Bonds May 7

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Today for the 30-Day Podcast Coach4aday Challenge I am listening to an episode about I-Saving BONDS

I BONDS are a type of U.S. savings instrument designed to protect the value of your cash from inflation. It is often a technique that is overlooked by many financial planners for a variety of reasons including it can only be purchased online. With the stock market in decline the past 5 weeks investors are looking for safer investment options.

Day 8 Podcast

Several weeks ago, I became aware of this financial instrument. Searching on Spotify I located a Podcast on financial planning called “Retirement Revealed“. The episode I listened to was called “Buy I-Savings Bonds in May 2022“. The host of the show is Jeremy Keil and his guest was David Enna.

FAQ

Investors can buy up to $10,000 worth annually through the government’s TreasuryDirect website.

They are exempt from state and local income taxes.

I Bonds purchased from May through October 2022 will pay an inflation-adjusted annual rate of 9.62%, and when combined with a fixed rate of 0.0%, creates a composite rate of 9.62% for six months.

First introduced in September 1998, I Bonds (the “I” stand for “Inflation”) are inflation-protected, are issued by the United States Treasury, and provide a guaranteed real rate of return for 30 years.

If used for qualifying educational expenses, the interest earned is free from federal taxes.